9 | Audit of Public Utilities Billing and Collection Processes July 2024 1. Non-Compliance with County Resolution No. 2022-185, Order Adopting and Ratifying Water, Wastewater, Reclaimed Water, and Other Utility Rates, Fees, and Charges for the Sarasota County Utilities System, regarding security deposit fees with one (1) instance of an incorrect security deposit charged to a customer Observation Sarasota County Resolution No. 2022-185 was adopted to establish and ratify water, wastewater, reclaimed water, and other utility rates, fees, and charges for the Sarasota County Utilities System and was part of the county’s efforts to ensure appropriate pricing and cost recovery for utility services provided to residents and businesses. It is important to note that County Resolution 2023-148 superseded County Resolution 2022-185, however, it was not effective until October 1, 2023, and the discrepancy was created prior to this date. One of the fees listed within the Resolution is the security deposit fees. Security deposit fees are collected upon service application and are based on water meter sizes. The auditor selected a stratified sample of fifty (50) accounts out of a population of 10,850 with a security deposit that was charged in 2023. During the review of the fifty (50) sampled accounts, observations included one (1) security deposit not in compliance with County Resolution No. 2022-185. A customer was charged $1,200.00 as a security deposit instead of the correct amount of $3,000.00, leaving a difference of $1,800.00. A-lower-than required security deposit may not cover the cost if a customer defaults on their payments, leaving the Public Utilities Department with a financial loss and causing additional administrative burden to help recover these costs. The discrepancy was observed after the account was finalized and the security deposit was refunded. Recommendation • Due to the account already being finalized, there is not an opportunity to correct this specific matter. However, the Public Utilities Department should continually train staff responsible for account setup and billing to ensure they are fully aware of the security deposit requirements and its correct application. • The Public Utilities Department could enhance the billing system to automatically flag or prevent the processing of amounts with incorrect security deposit amounts once the meter sizes are inserted into the billing system. This can help reduce human error and ensure compliance with County Resolution 2023-148. Management Response Training Enhancement: Call Center leadership will periodically provide documented refresher training to staff to ensure deposit requirements are assessed in compliance with County Resolution 2023-148. Completion Date: Friday, July 19th.
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